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In a big industry the numbers of factors influencing a decision have increased situation has become big and complex because these factors interact with each other in complicated fashion. There is thus great uncertainty about the outcome of interaction of factors like technological environmental competitive etc. For instance consider a factory production schedule which has to take into account.
a. Customer demand.
b. Requirements of raw materials.
c. Equipment capacity and possibility of equipment failure and
d. Restrictions on manufacturing process
Disadvantage of standard Deviation It is not easy to understand and calculate. It gives more weight to the extremes and less to the items nearer to mean. Since
A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i
a paper mill produce two grades of paper viz., X and Y. because of raw material restrictions, it cannot produce more than 400 tona of grade X and 300 tons of grade Yin a week. ther
MAX: 150 X1 + 250 X2 Subject to: 2 X1 + 5 X2 = 200 - resource 1 3 X1 + 7 X2 = 175 - resource 2 X1, X2 = 0 2. How many units of resource 1 are cons
Normal 0 false false false EN-IN X-NONE X-NONE
operation research scope
application&techniques
This method is more systematic and orderly than least cost method. Here penalties for each column and row of the transportation table are determined, and the row or column with
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